With FCC Commissioner Geoffrey Starks hosting a field hearing in Puerto Rico Friday about the need for telecom network resiliency after widespread damage from hurricanes in 2017 (see 1710030057) and more recent earthquakes (see 2002130056), scheduled witnesses hope the hearing will call attention to Puerto Rico's plight and help the telecom industry strengthen its communications infrastructure. The Wireline Bureau is moving ahead with plans to allocate millions in funding to help such efforts.
The FCC released a draft proposal Tuesday to ban equipment from Chinese vendors Huawei and ZTE from networks funded by the USF. Industry officials largely welcomed the order. Huawei signaled it will fight. Commissioners are scheduled to vote Nov. 19, after Chairman Ajit Pai circulated the item Monday (see 1910280054). The FCC also posted proposed new 911 location accuracy rules.
The FCC released a draft proposal Tuesday to ban equipment from Chinese vendors Huawei and ZTE from networks funded by the USF. Industry officials largely welcomed the order. Huawei signaled it will fight. Commissioners are scheduled to vote Nov. 19, after Chairman Ajit Pai circulated the item Monday (see 1910280054). The FCC also posted proposed new 911 location accuracy rules.
Telecom, fiber and satellite parties interested in expanding their broadband footprints in Puerto Rico and the U.S. Virgin Islands met with aides to FCC commissioners and officials at the agency's Wireline Bureau over the past few weeks to share their concerns over a new wave of awards in the Uniendo a Puerto Rico Fund and the Connect USVI Fund in docket 18-143. FCC Chairman Ajit Pai issued a draft order this month on how the agency will allocate $950 million in USF dollars to providers for rebuilding and strengthening broadband networks in those territories after the devastating hurricanes Maria and Irma hit within a two-week period in 2017 (see 1909050043).
Telecom, fiber and satellite parties interested in expanding their broadband footprints in Puerto Rico and the U.S. Virgin Islands met with aides to FCC commissioners and officials at the agency's Wireline Bureau over the past few weeks to share their concerns over a new wave of awards in the Uniendo a Puerto Rico Fund and the Connect USVI Fund in docket 18-143. FCC Chairman Ajit Pai issued a draft order this month on how the agency will allocate $950 million in USF dollars to providers for rebuilding and strengthening broadband networks in those territories after the devastating hurricanes Maria and Irma hit within a two-week period in 2017 (see 1909050043).
Frontier Communications stock received a rating of underperform Wednesday in an equity research note from analysts at Wells Fargo Securities after Frontier's Q2 2019 earnings report Tuesday. Frontier reported $2.07 billion revenue for the quarter, down from the Q1's $2.1 billion (see 1904300217). The company's net loss for the Q2 was $5.32 billion, for a net loss of $51.07 per common share. It reported a net loss of 71,000 broadband subscribers. On an earnings call Tuesday, Frontier CEO Dan McCarthy called the increased customer churn to 2.14 percent on the consumer side "disappointing," blaming it partly on seasonality, competitive pressures and customer roll-off as promotional bill credits ended. McCarthy said it's premature to speculate how the company's federal broadband subsidies will fare under an upcoming USF transition from the Connect America Fund to the proposed Rural Digital Opportunity Fund still at the NPRM stage. He suggested the terms of the RDOF reverse auctions may be less favorable to Frontier than they were under CAF Phase II auctions. Frontier plans to participate in the RDOF auctions and is pleased that latency will be a consideration in how the bids will be weighted, McCarthy said. The company said it expects to close on the sale of its operations in Washington, Oregon, Idaho and Montana, announced in late May, sometime in the first half of 2020 (see 1905290042). "The focus is clearly on liquidity, with plans of divesting its northwest operations to bring $1.3 billion in cash to the balance sheet," said Wells Fargo, "but the incremental investment required to meet the terms of the deal coupled with lower than expected benefit from FTR's transformation program and higher payments due in 2H 2019 that weren't initially considered with 2019 guide, all leave us firmly on the outside looking in." Frontier's share price dipped under a dollar early Wednesday and closed at 94 cents, down 23.59 percent.
Frontier Communications stock received a rating of underperform Wednesday in an equity research note from analysts at Wells Fargo Securities after Frontier's Q2 2019 earnings report Tuesday. Frontier reported $2.07 billion revenue for the quarter, down from the Q1's $2.1 billion (see 1904300217). The company's net loss for the Q2 was $5.32 billion, for a net loss of $51.07 per common share. It reported a net loss of 71,000 broadband subscribers. On an earnings call Tuesday, Frontier CEO Dan McCarthy called the increased customer churn to 2.14 percent on the consumer side "disappointing," blaming it partly on seasonality, competitive pressures and customer roll-off as promotional bill credits ended. McCarthy said it's premature to speculate how the company's federal broadband subsidies will fare under an upcoming USF transition from the Connect America Fund to the proposed Rural Digital Opportunity Fund still at the NPRM stage. He suggested the terms of the RDOF reverse auctions may be less favorable to Frontier than they were under CAF Phase II auctions. Frontier plans to participate in the RDOF auctions and is pleased that latency will be a consideration in how the bids will be weighted, McCarthy said. The company said it expects to close on the sale of its operations in Washington, Oregon, Idaho and Montana, announced in late May, sometime in the first half of 2020 (see 1905290042). "The focus is clearly on liquidity, with plans of divesting its northwest operations to bring $1.3 billion in cash to the balance sheet," said Wells Fargo, "but the incremental investment required to meet the terms of the deal coupled with lower than expected benefit from FTR's transformation program and higher payments due in 2H 2019 that weren't initially considered with 2019 guide, all leave us firmly on the outside looking in." Frontier's share price dipped under a dollar early Wednesday and closed at 94 cents, down 23.59 percent.
The House Commerce Committee continued considering the Save the Internet Act net neutrality bill (HR-1644) through Wednesday afternoon, after spending hours debating and voting on a litany of Republican-led amendments that Democrats claimed were mainly aimed at stonewalling advancement of the measure. The committee was expected to have ultimately advanced HR-1644 on a party-line vote. It still needed to handle many amendments and the measure's underlying text. HR-1644 and Senate companion S-682 would add a new title to the Communications Act that reverses the FCC order, rescinding its 2015 rules. The bill would restore reclassification of broadband as a Communications Act Title II service (see 1903060077).
The House Commerce Committee continued considering the Save the Internet Act net neutrality bill (HR-1644) through Wednesday afternoon, after spending hours debating and voting on a litany of Republican-led amendments that Democrats claimed were mainly aimed at stonewalling advancement of the measure. The committee was expected to have ultimately advanced HR-1644 on a party-line vote. It still needed to handle many amendments and the measure's underlying text. HR-1644 and Senate companion S-682 would add a new title to the Communications Act that reverses the FCC order, rescinding its 2015 rules. The bill would restore reclassification of broadband as a Communications Act Title II service (see 1903060077).
NARUC's Telecom Committee unanimously cleared an amended Lifeline resolution urging the FCC and Universal Service Administrative Co. ensure the national verifier accesses state databases required to automatically check users are eligible. USAC is responding to concerns and committed to making the NV work, South Dakota Commissioner Chris Nelson told us after the vote.